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GOVERDHAN LAL DHAWAN versus STATE OF BIHAR & OTHERS

Citation: [1988] SUPP. 1 S.C.R. 593 · Decided: 27-07-1988 · Supreme Court of India · Bench: E.S. VENKATARAMIAH · Disposal: Dismissed

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Judgment (excerpt)

; 
GOVERDHAN LAL OHAW AN 
v. 
STATE OF BIHAR & OTHERS 
JULY 27, 1988 
[E.S. VENKATARAMIAH AND M.M .. DUTT, JJ.] 
A 
B 
Motor Vehicles Act, 1939-Whether without a prior agreement 
between two or more Regional Transport A!tthorities of regions tflrqugh 
which an inter-regional route patses, it is ()pen t() q11yone 9f the said 
Regional Transport Authority to grant a permit to ply a st(lg~ cqrriag_e 
on the said inter-regional route, under provisions of.. Β· 
-
C 
The short point which arose for consid.eration iJ,t tll.i.s ci1se was 
whether withont a prior agreement between two or me>re R~i.on11I 
Transport Authorities of the regions throug)l which. 81! inter.regioJ,llll 
route passes, it was open to any one of the said Regional Transport I) 
Authorities to grant a permit to ply a stage carriage on tbe sold int.erβ€’ 
regional route under the provisions of the Motor Vell.i_cles. A_ct, 1.939 
('the Act'). 
The North Bihar Regional Transport Authority invited applicll-. 
tions for granting stage carriage permits iJ,t respect of int'-rΒ·~ol'!al e 
routes connecting certain plac.,,. withiJ,t its jurisd,iction aJ,td ~ertllil'I e>ther 
places within . the jurisdiction of the Soutll. !lillar Regional Transport 
Authority. The petitioner filed a wriJ petition in the Hig)l C()urt, q11Β’s-
tioning the power of th.e North Bihar Regional Transport A11th()rity to 
grant permits above-said with90t 11 prior agree111ent ~twee11 it alt4 tile 
South Bihar Regional TrllllSport Auth9rity. The High_ Co0rt. c!is111issed 
p 
the writ petition- Aggrieved by the order of the ftigh Court, the 
petitioner moved this Court for relief by this petition for special leave. 
Dismissi~ the β„’'titie>n, the Court, 
HELD: Under section 45(1) of tile Act, an applic.atioJ,t for l! G 
permit for a vehicle propose(I to be used. in tw0 o.r m11re regions within 
the same State, has to be made to the Regionaj Tr3"'Sport Authority of 
the region in which. tile major pC)rtioJ,t of the proPC>se'l rQl!l.e or area ~. 
and in case tlte portion of the proposed r11utec Β· o.r 11r-ea i_l! e..c.h_ (If tlte 
r.egie>i:isis apprQXim11tely equal, to ti!e R~ional. Trl!!lsPtlrt. A.11t!wl'itY of 
the regionJn_ which it,is proposed t.o keep tile vehicle. (5~6F'-(;J_ 
H 
593 
A 
B 
594 
SUPREME COURT REPORTS 
(1988] Supp. 1 S.C.R. 
Under section 63 of the Act, in the absence of any rules to the 
contrary under the Act, a permit granted by the Regional Transport 
Authority of one region is not valid in any other region unless the 
permit has been counter-signed by the Regional Transport Authority of 
the other region, while counter-signing a permit, it is open to the 
Regional Transport Authority of the other region to impose its own 
conditions which it might have imposed if it bad granted the permit. 
If there are any rules framed by the State Government under the Act, 
they supersede the provisions of section 63. If there is an agreement 
between the States concerned with regard to the grant and the counter-
signature of the permits, then it is not necessary to comply with the 
procedure prescribed by section 63, for counter-signature of permits. 
C In this case, the provisions of section 63 of the Act applied to all the 
inter-regional permits in the State of Bihar, as no rule framed under the 
Act by the State of Bihar regarding the procedure to be followed in the 
case of counter-signature of permits was brought to the notice of the 
Court. l598E-H; 599A] 
D 
Section 47(3) being inapplicable to the inter-State or inter-
regional permits, it is open to the Regional Transport Authority con-
cerned to decide whether there is any necessity to issue the permit 
applied for. The Act does not contain any procedure for two or more 
Regional Transport Authorities entering into an agreement before an 
application for an inter-regional permit is granted. The only provision 
E which provides for an agreement to be arrived at for purposes of 
counter-signature is the agreement between two or more States referred 
to in the first proviso to sub-section (3) of section 63 of the Act. An 
inter-State agreement of that nature can be arrived at only after follow-
ing the procedure prescribed under sub-section (3A) of section 63 when 
it is open to the parties affected by the proposal to make representa-
F 
lions. In one sense, the procedure prescribed in sub-section (3A) of 
section 63 takes the place of procedure to be followed by a Regional 
Transport Authority while granting or counter-signing perm

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